Should I Stay or Should I Go?

  As the life cycles of businesses mature and grow over time it becomes necessary to re-evaluate your office space when your lease is coming up for renewal. Square footage requirements factor as just one component of the decision process to remain where you are or look for new space. A comprehensive evaluation also includes the following issues in today’s modern business atmosphere and serve as a guide to stay or go. 1. Are You Using Your Square Footage Efficiently? Take a hard look at where your business is now and where it’s likely to be in 5-10 years. Do…
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What is CRE Dual Representation?

If you’re involved in any leasing/purchasing real estate process it’s likely you’ve come across the term “dual representation” and it’s basically this: dual agency representation happens when the same broker or firm represents both the tenant and landlord in the same transaction. It’s common to find this happening when big firms are involved in the process. What might seem like an ideal solution at the time can cause problems during the transaction because it’s not possible to represent both parties fairly in dual representation real estate transactions. There are too many conflicts of interest between the tenant and the landlord.…
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Here’s What You Should Know if Your Building Has Been Sold

If you occupy a building that’s been sold, be aware of the following changes. One immediate change that can happen is you will have a new property manager. If so you'll be notified of the change of address under the notices provision of your lease. Going forward all rent payments and correspondence will need to go to the new landlord or landlord agent. However, under new ownership your lease terms do not change. Your lease is a legally binding document until it expires. Before the sale finalizes you will be asked by your current landlord/seller to sign an estoppel agreement,…
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Considering a Relocation? A Guide to How Much Time You Need

Market conditions, the size and complexity of the transaction, and option notice dates can help determine when to begin the process of evaluating your office lease. Time should be your ally, not your enemy during negotiations with any landlord. Landlords know that other buildings you’re considering will most likely have to create a space plan, get construction pricing, agree on a rental rate, prepare and execute a lease document, apply for construction permits and prepare the space for occupancy. This is, at a minimum, a 4 to 6 month process. So a tenant that waits until there are only six…
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Explore Your Alternatives Before Exercising Your Lease Renewal Option!

Each lease expiration should be viewed as an opportunity to explore and develop alternative space options. Only after an exhaustive search can the decision to either renew or relocate be made with confidence. Needless to say, this can be a lengthy process which should start well in advance of the lease expiration depending on the size of the requirement. If your first choice is to renew, this process will provide the much needed leverage you will need when negotiating with your current landlord. Most commercial leases typically run between 5-10 years. In well negotiated leases there are provisions to the…
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Why You Need An Exclusive Tenant Representative

                                                                                                                            Leasing Commercial Space is a Risky Approach On Your Own... The process of securing commercial space for your organization, whether it is a new location or extending a lease in your current building, is a complex and time…
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What’s The Best Fit – Class A or Class B Buildings?

In metropolitan areas across the globe, commercial buildings have classifications. One building is considered a Class A building while the building down the block is a Class B building. Why is that? The differences between Class A buildings and Class B building can be found in the rating system established by the Building Owners and Managers Association International (BOMA.) These ratings establish the terms where brokers, tenants, landlords and analysts are speaking the same language about the quality of available office market spaces. Following is some general information about what defines a Class A and Class B building to help you…
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The Building You Occupy Has Been Sold. Now What?

Here are some things you need to know if you occupy a building that’s been sold. An immediate change that may happen is you will have a new property manager. If so you'll be notified of the change of address under the notices provision of your lease. Going forward all rent payments and correspondence will need to go to the new landlord or landlord agent. However, under new ownership your lease terms do not change. Your lease is a legally binding document until it expires. Before the sale finalizes you will be asked by your current landlord/seller to sign an…
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Tenants Need To Know – Who Pays For That?

Typically when leasing office space, most contracts will require that the tenant pays for most, if not all, building operating expenses. However, tenants should not have to pay commissions, improvement costs or depreciation among other things. We found a comprehensive list of those and other items you shouldn't have to pay for at the Ruminations blog. Check it out! In order to protect your interests in lease negotiations, consider engaging howardcommercial. We know the ins and outs of the real estate transaction including all the provisions contained in a lease agreement. A real estate lease is complex legal document with…
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